Dynamic impacts of globalization and environmental performance on renewable energy

Abstract

This study investigates the dynamic relationships between renewable energy consumption, globalization, trade openness, carbon emissions, and arable land in Somalia from 1990 to 2020 using annual time series data from various sources. Employing econometric models such as the ARDL, FMOLS, and DOLS, the analysis reveals significant long-run relationships. A 1% increase in globalization (LnGI) and trade openness (LnTO) boosts renewable energy consumption (LnRE) by 0.123% and 0.020%, respectively, while a 1% rise in carbon emissions (LnCO2) decreases LnRE by 0.088%. Short-run dynamics show similar trends. These findings, validated by FMOLS and DOLS techniques, emphasize the impact of globalization, trade openness, and carbon emissions on renewable energy adoption. Policymakers should promote global integration and trade openness while enforcing strict carbon reduction measures to support renewable energy use and achieve sustainable development goals.